Explanation
BACKGROUND: This legislation authorizes the Finance and Management Director to establish a Universal Term Contract (UTC) for the option to purchase Distribution Transformers and Secondary Network Protectors with Wesco Distribution, Inc. The Division of Power is the primary user of Distribution Transformers. Distribution Transformers are used in the Division of Power’s electric distribution system. The term of the proposed option contract would be approximately 2 years, expiring April 30, 2020, with the option to renew for two (2) additional years. In addition, the expenditure of $1.00 is hereby authorized from General Budget Reservation BRPO000978.
The Purchasing Office advertised and solicited competitive bids in accordance with the relevant provisions of Columbus City Code 329 relating to competitive bidding, (Request for Quotation No. RFQ009273). The Purchasing Office opened formal bids on July 5, 2018. Two bids were received: Wesco Distribution, Inc. (representing manufacturers Howard Industries, Central Maloney, and ABB/PPI), and Stenger (representing manufacturer WEG). Stenger transformer dimensions for WEG exceeded the maximum dimensions in Division of Power’s specification and WEG transformers will not consistently fit on existing concrete pads. Therefore no bid award is made to Stenger.
The Central Maloney quoted transformers from Wesco Inc have an aluminum secondary coil and therefore do not meet Division of Power specifications that require copper coils.
The bid allowed for multiple contract awards. Wesco Distribution, Inc. bid two transformer manufacturers that are the lowest and best bids. The recommendation is to award to Wesco Distribution, Inc., for transformers manufactured by ABB/PPI and Howard Industries for all items they bid. However, a bid waiver is requested for Wesco Distribution Inc., because their bid was considered non-responsive due to unacceptable terms and conditions. Therefore, acceptable terms and conditions were negotiated by the Purchasing office with Wesco Distribution.
The Purchasing office is recommending award to lowest responsive and best bidder as follows:
Wesco Distribution, Inc., CC#25-1723345 expires July 25, 2020, manufacturer ABB/PPI Items: 7-88 and 90-112, and manufacturer Howard Industries, Items: 1-3, 7-147, $1.00
Bids were not received for items 4-6, therefore bids will be solicited for these items as needed.
Total Estimated Annual Expenditure: $500,000.00, Division of Power, primary user.
Emergency Designation: The Finance and Management Department respectfully requests this legislation be considered an emergency ordinance because these transformers are required to keep Power Distribution projects on schedule.
This company is not debarred according to the Excluded Parties listing of the Federal Government and is not listed in the Auditor of States database for Findings for Recovery.
FISCAL IMPACT: The expenditure of $1.00 is hereby authorized from General Budget Reservation BRPO000978. City Agencies will be required to obtain approval to expend from their own appropriations for their estimated annual expenditures.
Title
To authorize the Finance and Management Director to establish a Universal Term Contract for the option to purchase Distribution Transformers and Secondary Network Protectors with Wesco Distribution, Inc.; to authorize the expenditure of $1.00 from General Budget Reservation BRPO000978; to waive the competitive bidding provisions of City Code; and to declare an emergency. ($1.00)
Body
WHEREAS, the Distribution Transformer and Secondary Network Protectors UTC will provide for the purchase of medium-voltage electrical distribution transformers and secondary network protectors used for Power Distribution projects; and,
WHEREAS, the Purchasing Office advertised and solicited formal bids on July 5, 2018; and
WHEREAS, a bid waiver is requested because Wesco Distribution Inc. submitted terms and conditions that rendered their bid non-responsive. Acceptable terms and conditions have been negotiated, therefore, this company is recommended for award; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Utilities in that it is immediately necessary to authorize the Finance and Management Director to enter into a Universal Term Contract for the option to purchase of Distribution Transformers and Secondary Network Protectors with Wesco Distribution, Inc., thereby preserving the public health, peace, property, safety, and welfare; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Finance and Management Director is hereby authorized to enter into the following contract for the option to purchase Distribution Transformers and Secondary Network Protectors in accordance with Request for Quotation RFQ009273 for a term of approximately 2 years, expiring April 30, 2020, with the option to renew for two (2) additional years, as follows:
Wesco Distribution Ind., for manufacturer ABB/PPI Items: 7-88 and 90-112, and for manufacturer Howard Industries, Items: 1-3, 7-147, $1.00
SECTION 2. That this Council finds it is in the best interest of the City of Columbus to waive the competitive bidding provisions of Columbus City Codes Chapter 329 to permit the aforementioned purchase.
SECTION 3. That the expenditure of $1.00 is hereby authorized from General Budget Reservation BRPO000978 of this ordinance to pay the cost thereof.
SECTION 4. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 5. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.